Auto insurance with collision coverage would pay for repairs to a person’s vehicle if the accident were their fault. This coverage is typically purchased as an add-on to a standard auto insurance plan and safeguards drivers against financial loss in the event of an accident.

Collision insurance is protection against financial loss in the event of an accident with another vehicle or immovable objects like a tree or fence. The lender typically requires collision insurance if you lease or finance your vehicle. Collision insurance is optional if you’ve paid off your car loan.

Why Do I Need Collision Coverage?

One of the most common kinds of auto insurance is collision coverage. In an accident, it can help defray the expense of fixing or replacing your car. While not mandated by law in any given state, you may be required to have it by your lender if you lease or finance your vehicle. Even if you have paid off your car completely (congratulations! ), you still need collision insurance. In a moment, we’ll explain why.

When a collision occurs, what does collision insurance pay for?

Just what does collision coverage entail, exactly? Just this: The cost of repairing or replacing your vehicle if you hit something, such as a tree, another car, your garage door (oops!), or anything else, is partially or entirely covered by collision insurance.

Is it mandated by law to have collision coverage?

Although collision coverage is strongly recommended, it is not mandated by law. However, if you still owe money on your car or have a lease, you may be required to keep it. Auto insurance is recommended for those who drive frequently or in congested areas and those who own expensive vehicles.